September 22, 2017
Stable and growing steadily, the Philippine dairy market is projected to have a value of US$10.2 billion by 2021.
According to a report, entitled "Top Growth Opportunities: Dairy & Soy Food in the Philippines", the country is consuming dairy at one of the fastest-growing rates in the world, thanks to rapid urbanisation and rising incomes.
After a period of strong growth at a CAGR (compounded annual growth rate) of 6.1% in US dollar terms between 2011 and 2016, the Philippines' dairy market is forecast to grow even faster in the five years to 2021, at a CAGR of 9.1%, according to the report, which was recently released through market research store Research and Markets.
Since 2015, the government has been promoting school milk consumption. Increased health consciousness amongst young consumers and their hectic lifestyles are also favoring the growth of the dairy and soy food market in the Southeast Asian country.
Off-trade dairy sector accounts for a higher value in US dollar terms than the on-trade, an effect mirroring general moves amongst Filipino consumers toward more consumption in the home setting. However, both the off-trade and on-trade dairy sectors have recorded similar growth rates in dollar terms in the last five years.
The Philippines ranks as one of the smallest market in the global dairy and soy food sector in terms of per capita expenditure in dollar terms, though it is larger than China and Indonesia.
It continues to be a major global importer of dairy products, especially milk powder. Major suppliers are New Zealand (30%), the US (24%) and Australia (7%).
Importing Girolando cattle from Brazil is part of the DA's plan to increase local milk production to meet at least 10% of annual domestic requirement by 2022 and reduce the country's reliance on imports. Girolando breed is ideal for milk and meat production in tropical climates, Piñol said.